BofA’s Hartnett Recommends Consumer Stocks, Highlights $23.6B Equity Outflows
Bank of America’s Michael Hartnett recommends US consumer stocks as a contrarian long and long-yield curve steepeners to capitalize on potential policy support post-Middle East conflict and midterm election pressures. Investors pulled $23.6 billion from US equity funds in the week ended March 25, the largest outflow in 13 weeks.
1. Hartnett’s Consumer Stock Recommendation
Michael Hartnett identifies US consumer stocks as his top contrarian long strategy, arguing that policy measures to prevent a recession will bolster consumer spending and stock performance even as inflation concerns persist.
2. Record Equity Fund Outflows
Investor outflows from US equity funds reached $23.6 billion in the week ended March 25, marking the highest level in 13 weeks and reflecting growing caution despite potential policy interventions.
3. Post-War Policy Expectations
Hartnett anticipates policy panic from the White House to avert recession, including potential universal basic income initiatives and other affordability measures aimed at shoring up consumer confidence ahead of the November midterms.